Director Candidate Says Lawsuit ‘Legitimate Dispute’

A city director candidate involved in a credit-card lawsuit says the “legitimate dispute” does not reflect on his ability to serve.

American Express is suing Mike Lorenz and his former company, JLM Promotions, for $58,739. A response filed by Lorenz regarding the suit states the “defendant denies each and every material allegation.”

Lorenz is a candidate for Ward 3 city director. His opponent Nov. 6 is Matthew Garner. The seat is currently held by Don Hutchings, who did not seek re-election.

The lawsuit was filed in Sebastian County Circuit Court on Feb. 3. The credit card company states that, “obligations are due and owing and while repeated demands have been made upon the defendants, payment has not been forthcoming.”

In an email, Lorenz contends the lawsuit involves a legitimate dispute between his former business, JML Promotions Inc., and American Express, and that “the issue is in no way related to the actual sale transaction of my business or the current owner in any way.”

“The dispute existed prior to the transaction more than two years ago and multiple attempts have been made to resolve it,” he wrote. “Everyone experiences bumps in their personal and business finances at one time or another. Ongoing legal discussions require discretion on my part, but I’d like to make it clear that this is not a personal debt and it should have no reflection on my ability to serve the citizens of Fort Smith as Ward 3 city director.”

A financial statement filed with the state for the year 2011 lists Lorenz as president and CEO of JLM Promotions. It indicates no creditors. A description of services for which compensation was received by JLM Promotions lists “fees received for management and consulting at different motorcycle race venues.” The compensation amount is marked in the $1,000-$12,500 range.

The lawsuit was recently posted on a discussion board website. With the election just weeks away, Lorenz described the timing as “questionable, but not unexpected.”

In his email, Lorenz contends his past experience qualifies him for the city director spot.

“I have the experience of building a profitable business, possessing a strong financial background, including a business finance degree, and years of community service and involvement,” he wrote.

Lorenz is collections manager for Golden Living Administrative Services.